Published in 2007 Annual issue of Electrical India-Vol 47 No 11, November 2007

(Electrical India is Indias oldest magazine on power & electrical products industry. It is being published since 1961

Electricity Grid Management in India- An Overview

by Vivek Pandey
Introduction
Transmission and Grid Management are
essential functions for smooth evacuation of
power from generating stations to the
consumers. Transmission function primarily
consists of construction and maintenance of
the transmission infrastructure while the job of
the grid operator is to give operating
instructions to the engineers in the field and
ensure moment-to-moment power balance in
the interconnected power system. Grid
management involves taking care of the over
all reliability, security, economy and
efficiency of the power system.

Southern Grid and rest of India grid can be

manually controlled.
Load Despatch Centres
Each of the five regions has a Regional Load
Despatch Centre (RLDC), which is the apex
body, as per the Electricity Act 2003 (EA
2003), to ensure integrated operation of the
power system in the concerned region. The
RLDCs for North, East, West, South and
Northeast regions are located at Delhi,
Kolkatta, Mumbai, Bangalore and Shillong
respectively.

Fig-2: Load Despatch Centres

Fig-1: Five Regional grids in India

The RLDCs coordinate amongst themselves

both offline as well as online for maintaining
the security and stability of the integrated panIndia grid. In line with the federal structure of
governance in the country, every state has a
State Load Despatch Centre (SLDC), which is
the apex body to ensure integrated operation
of the power system in the state.

Grid Management in India is carried out on a

regional basis. The country is geographically
divided in five regions namely, Northern,
Eastern, Western North Eastern and Southern.
All the states and union territories in India fall
in either of these regions. The first four out
these five regional grids are operating in a
synchronous mode, which implies that the
power across these regions can flow
seamlessly as per the relative load generation
balance.
The
Southern
Region
is
interconnected with the rest of India grid
through asynchronous links. This implies that
quantum and direction of power flow between

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quantity of electricity transmitted through the

regional grid. RLDC is responsible for
carrying out real time operations of grid
control and despatch of electricity within the
region through secure and economic operation
of the regional grid in accordance with the
Grid Standards and Grid Code. The functions
of SLDC elaborated in EA 2003 are similar to
that of the RLDC except the area of
jurisdiction, which in case of SLDC is the
state.

Fig-3: Regional Load Despatch Centres

The RLDCs in India are presently owned,
managed and operated by the Central
Transmission Utility (CTU), POWERGRID
while the SLDCs in the state are owned
operated and managed by the respective State
Transmission Utility (STU) or the State
Electricity Board (SEB) as the case may be.
The EA 2003 has a provision for a National
Load Despatch Centre (NLDC) for optimum
scheduling and despatch of electricity across
various regions and also coordinating cross
border energy exchanges in real time. Ministry
of Power has notified the functions of NLDC
that is under construction. Presently,
POWERGRID is operating a National Power
System Desk (NPSD) in New Delhi for
information exchange and facilitating interregional transactions. The cross border
exchanges are coordinated by the RLDC of the
region
wherein
the
international
interconnection is situated.
Role of Load Despatch Centres
As per the Electricity Act 2003, the Regional
Load Despatch Centre monitor grid
operations, exercise supervision and control
over the inter-state transmission system, are
responsible for optimum scheduling and
despatch of electricity within the region, in
accordance with the contracts entered into
with the licensees or the generating companies
operating in the region and keep accounts of

Grid management functions

Functions of grid management can be
segregated into ex-ante, real-time and postfacto functions. The ex-ante functions are
more in the nature of planning for the day of
operation. It involves estimating the future
scenarios, evaluating options and making
elaborate plans to meet the anticipated as well
as unforeseen events.

Fig-4: Typical frequency variation in a day

The real time functions primarily comprise of
balancing the dynamically varying supply and
demand of electrical energy in the
interconnected system.

Fig-5: Bus voltage variations in a day

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Vital grid parameters such as frequency, node

voltages,
transmission
line
loading,
transformer loading, electrical (angular)
separation between generation pocket and load
centre etc. are monitored round the clock and
suitable instructions are passed on to the
SLDCs or generating stations in case the
values of the above parameters are seen to be
outside the permissible bands. The operating
band has been specified in the Indian
Electricity Grid Code (IEGC), approved by
Central Electricity Regulatory Commission
(CERC).

Fig-7: Data acquisition system

Under the system the vital system variables
are measured by transducers installed at all the
important locations. The recorded data is
transmitted through communication channels
and ultimately displayed in the operator
consoles in the load despatch centres.

Fig-6: Line power flows

All this requires extensive coordination with
the operating personnel positioned at
switching stations, generator control rooms
and other load dispatch centres. Critical
decisions have to be taken at the spur of the
moment. Post facto functions involve grid
performance reporting, post mortem of events,
settlement of accounts, documentation of
experience and interaction with stakeholders.
Operating aids for grid management
In order to enhance the power system visibility
and improve the quality of supervision in real
time power grid operation in the country, the
grid control rooms at the regional and state
level have been equipped with a state-of-theart communication and data acquisition
system.

Fig-8: Typical real-time display

The grid operator supervises the power system
through this system. It acts like the sensory
organs of the grid operators and helps them to
diagnose the states of system and also take
corrective measures. It also ensures
transparency in grid operation and facilitates
amicable resolution of day-to-day problems
associated with this complex task of grid
operation. The real time data is archived
continuously and is later retrieved for analysis
of events occurring in the grid.
Various states of grid operation
The interconnected network under current
technology creates strong interactions across
locations. Behaviour of various power system
elements synchronised with the grid influence
the system parameters giving rise to a
dynamically varying system states. These

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states are normal, alert, emergency, extreme

and restorative.
The operator actions are perpetually guided by
the objective of maintaining the system
directed in normal state for most of the time.
Nevertheless the system may slip from a
normal to alert, emergency or extreme state in
less than a second due to a small or large
perturbation in the system. Contingencies
disturb the grid parameters and call for
immediate operator intervention. Normally it
takes a few minutes to restore the system back
to normal state but during major disturbances
it may take several hours or several days to
restore normalcy. It is therefore essential that
all precautions be taken to prevent the system
from degenerating to an extreme state. This
requires suitable and timely interventions in
the power system in short term as well as in
medium and long-term.
Regional Electricity market
The regional electricity market in India that
operates over the Inter State Transmission
System (ISTS), is governed by the frequency
linked operation and commercial settlement
mechanism known as the Availability Based
Tariff (ABT) and Unscheduled Interchange
(UI) mechanism. The ABT mechanism has
replaced the command and control system
employed earlier with a contractual approach.
The utilities have full freedom and choice to
enter into long-term and short-term bilateral
contracts. These contracts are incorporated in
the daily interchange schedules issued by the
RLDCs.

Fig-9: Day-ahead resource scheduling process

The interchange schedules whether despatch,
drawal or inter-regional are treated as

commitment to deliver or withdraw a certain

quantum of power at a designated time from
the grid. The utilities also have the option of
reviewing and revising the scheduled
interchanges in real time to suit the
demand/supply position in real time. The
revised schedules get implemented within six
time blocks after registering the request with
the RLDCs.

Fig-10: UI price vector

Further, the generating station operators and
state grid operators have been empowered to
respond to the real time pricing signals
generated from the frequency dependent UI
price vector.
Electricity trading
Open Access (OA) in ISTS has been
implemented in all the regions since 6th May
2004 in line with the open access regulations
issued by CERC. The regulations aim at
promoting non-discriminatory usage of the
transmission system by customers after
payment of appropriate charges. Access can be
granted under two categories: long -term and
short-term. Long-term access is granted for
usage of 25 years or more while the short-term
access is for a maximum for three months at a
stretch. As per the existing regulations the
long-term users pay higher charges and have a
higher priority over short-term users. The grid
operator declares the anticipated power
transfer
capability
available
in
the
transmission system during the forthcoming
three months. Within the short-term category
reservations on the transmission corridor may
be made under any of the categories: advance,
first-come-first-served, day-ahead and same
day.

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continue to provide the interface between the

physical system and the electricity market.

Fig-11: Short-term Open Access

Open access in transmission effectively
introduces competition in wholesale electricity
market. Although, the overall inter state trade
volume is currently only 3.0 % to 5 % of the
countrys total energy consumption, it has had
a multiplier effect on the entire power sector
by promoting competition, efficiency and
economy.
The RLDCs and SLDCs are
playing a key role in facilitating and
scheduling
these
transactions
without
compromising on the security and reliability
of the grid.
The regional transmission system and the
interregional links are being utilized to
transport surplus hydro generation in
northeastern region and pithead generation in
the eastern region to the energy deficit load
centres in the northern, western and southern
regions. The inter-regional exchanges have
increased manifold after introduction of open
access. Almost all utilities in the grid have
taken advantage of the open access provisions
and transactions have taken place in all
possible directions in the country say from
Northeast to North (e.g. Tripura to Haryana),
North to South (e.g. Punjab to Andhra
Pradesh), South to North (e.g. Kerala to
Punjab), West to North (e.g. Gujarat to Uttar
Pradesh), North to West (e.g. Punjab to
Maharashtra) and East to all other corners of
the country. The electricity trade in the
country is expected to grow further after the
commissioning of new generating stations and
establishment of the proposed organized
platform for trading in the form of Power
Exchange (PX). The grid operator would

Settlement system
For purpose of scheduling and settlement the
entire day in divided into 96 time blocks of 15
minute each. At the end of the day all before
the fact revisions in schedules get incorporated
as Implemented Schedules and they serve as
a datum for the payment of capacity charge,
energy charge and generation incentive to the
generating stations governed by the ABT
regime. The actual energy interchanges for
every 15-minute time block, are recorded with
the help of Special Energy Meters (SEM)
installed at all inter utility exchange points in
the region. These readings are used for
working out the actual injection of Inter State
Generating Stations (ISGS) and off-takes of
each state utility from the grid. The actual
values are then compared with the scheduled
values to obtain the deviations from schedules.
Real time deviations in a particular time block
are priced at the corresponding Unscheduled
Interchange rate (UI rate), and settled through
a pool account being maintained by RLDC.

The SEMs also record the reactive energy

interchanges at inter utility points. These are
settled as per the prevailing reactive energy
prices. The regional reactive energy accounts
are also managed by the RLDCs.
Challenges in grid management
Large interconnected grids are essential for
reliability of power supply and for economic
exploitation of spatially distributed energy
resources and consumption centres in the
country. The manifold growth in the network
size has increased the complexity of grid
management.

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The physical nature of the power flows on

transmission lines, rapidly changing demand
patterns, dramatic changes in the system
parameters, unexpected events in the grid and
calamities (natural or man made) make grid
management extremely challenging. This
requires tremendous presence of mind and
multidimensional skills. A system operator has
to quickly switch roles as a planner, a
strategist, an administrator, a consultant, an
economist and a soldier, which makes his job
highly demanding.
The unbundling process in the power sector
also has contributed significantly to the
growing complexity in grid management.
Competition has heightened the market
pressure, forcing system to be operated closer
to its physical limits. The number of utilities
especially in the state level has also increased
leading to increased difficulty in coordination
during offline as well as in real time. The
conflict of interests, unclear responsibilities,
inconsistency of objectives, inadequacy of
resources and legacy issues among these
utilities
often
impair
the
collective
performance of grid management.
All the above coupled with rapidly
diminishing species of power system
engineers and the general lack of
appreciation of this vital function is making
grid management a tough job.
Contribution of Grid Operators
Operating conditions require close monitoring
and control on very short time duration.
Advanced technologies are indispensable for
successful operation of the grid during the
various operating states but the contribution of
the engineers at the operating desk is equally
noteworthy. Very few people outside the grid
control centres are aware of the sweat and toil
that goes behind keeping the grid secure and
healthy. In fact the grid operator carries the
credibility of the entire electricity supply
industry in the country on his shoulders.
Against the few occurrences of large grid
disturbances such as the one that occurred in
Northern Region on 2nd Jan 2001, there are
innumerable cases when the alertness and

alacrity of the grid operators have been vital in

rescuing the grid from near death situations.
The operators have successfully tackled the
most unusual scenarios in real time grid
operation occurring at the most unexpected
and demanding hours of the day. It is
unfortunate that the heroes of such near miss
situations go unsung and unnoticed.
Neutrality of grid operator
Generation and transmission at the inter state
level has already been unbundled in 1991 after
the formation of POWERGRID. Unbundling
of generation, transmission and distribution in
states has been achieved to a large extent. As
per the EA 2003 the STUs are also expected to
disengage themselves from the trading
function shortly. Both the RLDCs and SLDCs
have been prohibited from engaging in the
business of trading in electricity. Further the
RLDC have been barred from engaging in
generation of electricity.
The
Central
Electricity
Regulatory
Commission
and
State
regulatory
Commissions regulate the fees and charges of
RLDCs and SLDCs respectively. The RLDC
charges are shared by the constituent states of
that region in ratio of their weighted average
allocations in the Central Sector power
stations. The fees and charges are independent
of the volume of power flow on the network,
which ensures the neutrality in grid
management. The grid management/operation
is so designed that grid operator merely
provides a secure and reliable platform for
energy exchanges between various players in
the grid without becoming a party to those
transactions.
Conclusions
Modern economies are dependent on reliable
and secure electricity services. Electricity
makes an essential contribution to economic
performance, international competitiveness
and community prosperity. The societys
dependence on electricity shall intensify as the
world moves ahead in the twenty-first century.
The pressure to operate system in higher risk
mode is bound to increase with increasing
network complexity, growing electricity
markets and increasing intensity of surprises

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from Mother Nature. All these challenges have

to be dealt with collectively and with sincerity
of purpose. Grid management therefore
deserves the recognition and attention of all
the stakeholders. They must all come together
to nurture this institution for the benefit of our
own present and for posterity. The investment
required for this might appear to be a high in
absolute monetary terms especially when it
has to be shared by the direct beneficiaries or
the state utilities. But it would be peanuts
when compared with the opportunity cost of
unserved electrical energy due to a blackout
that could have been averted by the
intervention of the system operators.

also thankful to Sh. S.R. Narasimhan, Chief

Manager (NRLDC), Sh. S.K. Soonee,
Executive Director (System Operation),
POWERGRID and all colleagues for their
guidance and untiring support.
Disclaimer
The views expressed in the article are the
personal views of the author.
References
1. Electricity Act 2003
2. Indian Electricity Grid Code, April
2006
3. www.nrldc.in
4. www.cercind.gov.in

Acknowledgement
The author acknowledges the encouragement
by POWERGRID management. The author is

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